Legal Alert: Treasury Releases Terms for Rescue of Private Banks and Savings & Loans
Privately held banks and savings & loans are now eligible to participate in the Treasury's $250 billion Capital Purchase Program. U.S. Department of the Treasury ("Treasury") recently released guidelines for privately held qualified financial institutions ("QFIs") with respect to such program. The Capital Purchase Program is a program being offered under the Emergency Economic Stabilization Act of 2008 (i.e. the bailout legislation) where Treasury will purchase preferred equity in QFIs. QFIs have until December 8, 2008, to apply to receive such preferred equity financing.